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Choose Funds Over ULIPs

A ULIP is not the best way to build a retirement corpus. Invest in well-performing funds instead…

I am investing Rs 2,000 every month since October 2007 in SBI Life Pension Policy. The performance has not been good and I am planning to invest in an equity mutual fund instead like HDFC Top 200 or HDFC Balanced fund in which I have SIP investments. Is this a good move?
- Nitin Khatri

SBI Life Pension policy is a unit-linked pension plan that mixes investments and insurance, which is not the best ways to build a retirement corpus. You are investing in good funds such as HDFC Top 200 and HDFC Balanced which are highly rated with a proven track record and performance history. Your investment objective is to build a retirement corpus which can be achieved by investing in mutual funds for the long term. You should consider exiting the pension plan after checking the exit costs and then increase your allocation to both mutual funds that you are investing in.

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